“If resources are not fixed but created, then the nature of the scarcity problem changes dramatically. For the technological means involved in the use of resources determines their creation and therefore the extent of their scarcity. The nature of the scarcity is not outside the process (that is natural), but a condition of it.”
– Tom DeGregori (1987). “Resources Are Not; They Become: An Institutional Theory.” Journal of Economic Issues, p. 1258.
The above quotation from one of my mentors goes a long way to explain the paradox of how “fixed” mineral supply (gold, silver …. oil, gas) expand rather than contract in a global free market.
A back-page current from the Wall Street Journal–just business-as-usual in the industry and in reporting–reminded me of Professor DeGregori’s insight. …
Continue Reading“Milton Friedman’s timeless energy insights should be appreciated for all time.”
Born on this day 106 years ago, free-market economist Milton Friedman (1912–2006) was one of a kind. Even the dyspeptic Paul Krugman called his rival “the economist’s economist…a very great man indeed—a man of intellectual courage who was one of the most important economic thinkers of all time and possibly the most brilliant communicator of economic ideas to the general public that ever lived.” The Economist (November 23, 2006) called him “the most influential economist of the second half of the twentieth century… and possibly all of it.”
Milton Friedman’s major professional mark was in monetary economics. But as a public intellectual, writing popular books and a biweekly Newsweek column, he became conversant in different fields, including energy.
Friedman understood how, for much of US history, major energy regulation was sponsored by some segment of the industry.…
Continue ReadingThe Alliance for Wise Energy Decisions (AWED) is an informal coalition of individuals and organizations interested in improving national, state, and local energy and environmental policies. Our premise is that technical matters like these should be addressed by using Real Science (please consult WiseEnergy.org for more information).
A key element of AWED’s efforts is public education. Towards that end, every three weeks we put together a newsletter to balance what is found in the mainstream media about energy and the environment. We appreciate MasterResource for their assistance in publishing this information.
Some of the more important articles in this issue are:
Largest US Wind Project ever, denied on the basis of economics
Carbon Tax: Market Manipulation is Not Market Choice
State asks US Military to pay for wind energy interference (!)…
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